AUD/USD sticks to modest gains above mid-0.6400s, Fed rate decision eyed


  • AUD/USD posts modest gain just above the mid-0.6400s ahead of the US key event.
  • The Federal Reserve (Fed) is widely expected to hold the interest rates in the 5.25% to 5.5% range.
  • Reserve Bank of Australia's (RBA) said additional tightening may be necessary if inflation proves more persistent than anticipated.
  • Market players await Australian Westpac Leading Index, the People's Bank of China (PBoC) interest rate decision and Fed decision.

The AUD/USD pair edges higher during the early Asian session on Wednesday. Market players await the highly-anticipated the Federal Reserve (Fed) monetary policy meeting. The pair currently trades around 0.6455, gaining 0.04% on the day.

The Federal Reserve (Fed) is scheduled to announce the two-day monetary policy meeting on Wednesday and is widely expected to hold the interest rates in the 5.25% to 5.5% range.This, in turn, might exert some selling pressure on the Greenback (USD) and acts as a tailwind for the AUD/USD pair. On Tuesday, the US Census Bureau revealed that the US housing industry revealed mixed results in August. Housing Starts fell 11.3%, while building permits surged 6.9%.

On the Aussie front, the release of the Minutes from the Reserve Bank of Australia's (RBA) September monetary policy meeting revealed on Tuesday that additional tightening may be necessary if inflation proves more persistent than anticipated. However, the case for maintaining the status quo was stronger, and recent data have not materially altered the economic outlook.

Furthermore, the People's Bank of China (PBoC) will announce the interest rate decision on Wednesday in Asian session. Chinese central bank is expcted to keep its benchmark lending rate unchanged. Any signs from the Chinese authorities about the additional stimulus plans to deal with the the property crisis might lift the China-proxy Australia Dollar (AUD) against the USD.

Looking ahead, market participants will keep an eye on the Australian Westpac Leading Index for August for fresh impetus ahead of the People's Bank of China (PBoC) interest rate decision later in Asian session. The attention will shift to the Fed interest rate decision on Wednesday at 18:00 GMT. These events could give a clear direction to the AUD/USD pair.

AUD/USD

Overview
Today last price 0.6456
Today Daily Change 0.0019
Today Daily Change % 0.30
Today daily open 0.6437
 
Trends
Daily SMA20 0.6431
Daily SMA50 0.6552
Daily SMA100 0.6615
Daily SMA200 0.6703
 
Levels
Previous Daily High 0.6449
Previous Daily Low 0.6417
Previous Weekly High 0.6474
Previous Weekly Low 0.6378
Previous Monthly High 0.6724
Previous Monthly Low 0.6364
Daily Fibonacci 38.2% 0.6437
Daily Fibonacci 61.8% 0.6429
Daily Pivot Point S1 0.642
Daily Pivot Point S2 0.6402
Daily Pivot Point S3 0.6387
Daily Pivot Point R1 0.6452
Daily Pivot Point R2 0.6466
Daily Pivot Point R3 0.6484

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD bounces off lows, back near 1.1330

EUR/USD bounces off lows, back near 1.1330

EUR/USD meets daily support around the 1.1300 neighbourhood, managing to regain pace and revisit the 1.1330 region. Sentiment turned after President Trump proposed a “straight 50% tariff” on European imports, undermining the pair’s bullish momentum.

GBP/USD eases from tops, revisits the 1.3500 zone

GBP/USD eases from tops, revisits the 1.3500 zone

GBP/USD benefits from broad US Dollar weakness, climbing to its highest level since February 2022 past 1.3500 at the end of the week. UK retail sales data surprised to the upside in April, lending extra wings to the quid.

Gold keeps the bullish tone near $3,350

Gold keeps the bullish tone near $3,350

Gold extends its weekly advance, trading around $3,350 per troy ounce on Friday. The rally in XAU/USD is driven by broad-based weakness in the Greenback, particulalry after President Trump’s threat to impose 50% tariffs on European imports.

Apple stock sinks below $200 after Trump threatens more tariffs

Apple stock sinks below $200 after Trump threatens more tariffs Premium

Trump grows irate at Apple's move into India. President claims Apple must produce US-sold iPhone in US or face a 25% tariff. US equity futures slip more than 1% in Friday premarket after Trump threatens the EU with a 50% tariff.

Ripple Price Prediction: Whale accumulation sparks hope as rising exchange reserves signal caution

Ripple Price Prediction: Whale accumulation sparks hope as rising exchange reserves signal caution

XRP sustains mid-week recovery as XRP/BTC flashes golden cross for the first time since 2017. Large volume holders increase XRP exposure, indicating rising demand and investor confidence.

The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025